PUBLISHER: MarketsandMarkets | PRODUCT CODE: 1793328
PUBLISHER: MarketsandMarkets | PRODUCT CODE: 1793328
MarketsandMarkets: The loyalty management market is estimated at USD 12.89 billion in 2025 and is expected to reach USD 20.36 billion by 2030 at a CAGR of 9.6%.
Scope of the Report | |
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Years Considered for the Study | 2019-2030 |
Base Year | 2024 |
Forecast Period | 2025-2030 |
Units Considered | USD (Billion) |
Segments | By Offering, Program Type, Application, Business Model, Vertical, and Region |
Regions covered | North America, Europe, Asia Pacific, Middle East & Africa, and Latin America |
The shift toward AI, cloud, and API-first loyalty solutions is transforming how companies build and manage customer relationships. These technologies enable brands to unify data across touchpoints such as online purchases, in-store visits, mobile apps, and social media, fostering real-time personalization and deeper engagement. Cloud-based loyalty platforms provide scalability, security, and centralized management of complex reward ecosystems, while AI and machine learning drive dynamic segmentation, predictive rewards, and behavioral analysis. This empowers businesses to understand customer intent, anticipate churn, and tailor loyalty campaigns to individual preferences.
API-first platforms provide flexibility and enable rapid integration with CRM, POS, eCommerce, and payment systems, facilitating seamless omnichannel loyalty execution. Brands can now launch custom programs more quickly, iterate efficiently, and improve customer experiences without being limited by legacy systems. As customer expectations for personalization and value rise, and as data privacy becomes a global priority, loyalty vendors are adapting with composable platforms, zero-party data strategies, and real-time engagement capabilities. These innovations are making loyalty programs more relevant, agile, and outcome-focused, marking this evolution as the foundation of digital loyalty transformation.
"B2C business model segment will witness the fastest growth during the forecast period."
In B2C loyalty management, strategies are primarily designed to cultivate emotional connections and encourage repeat purchases with individual consumers. The core objective is to understand and cater to personal preferences, enhance the shopping experience, and build brand affinity. B2C business models often involve points systems that convert purchases into redeemable rewards, tiered membership structures offering escalating benefits, and exclusive access to sales, events, or personalized content. Communication is typically direct and highly personalized, utilizing channels such as email, SMS, mobile apps, and social media to deliver tailored offers and updates. The focus is on driving immediate engagement, fostering brand evangelism, and shortening the sales cycle by making the purchasing journey seamless and rewarding.
"Customer lifecycle management application segment is expected to have the largest market size during the forecast period."
Customer lifecycle management involves managing and optimizing the entire customer journey, from acquisition and activation to retention and re-engagement, using loyalty programs as a strategic tool. Its primary role is to maximize customer lifetime value by providing targeted incentives and personalized experiences at every stage of the relationship. This segment recognizes that retaining existing customers is more cost-effective and profitable than acquiring new ones: a 5% increase in retention can boost profits by up to 25%. Brands are investing in advanced analytics, automation, and omnichannel integration to create seamless, context-aware loyalty experiences that foster lasting relationships.
"Asia Pacific is expected to record the highest growth rate during the forecast period."
Asia Pacific's loyalty management market is a hotbed of innovation, driven by evolving consumer behaviors and emerging trends. The region's diverse markets, from tech-savvy Japan to price-sensitive India, require flexible loyalty programs. Consumers here prefer instant gratification, with programs like GrabRewards offering real-time points redemption for rides or food deliveries, which aligns with the fast-paced lifestyle. Subscription-based loyalty models, such as those by Alibaba's 88VIP, are gaining traction by providing exclusive benefits for a monthly fee. The integration of social media platforms, like WeChat in China, enables brands to engage customers through mini programs, blending loyalty with social interaction. Asia Pacific's youthful, digitally engaged population and rising disposable incomes create a dynamic market for loyalty management, emphasizing creativity and consumer-centric strategies.
Breakdown of primaries
The study contains insights from various industry experts, from solution vendors to Tier 1 companies. The break-up of the primaries is as follows.
The major players in the loyalty management market include Epsilon (US), Oracle (US), Comarch (Poland), Bond Brand Loyalty (Canada), Merkle (US), Capillary (Singapore), Jakala (Italy), Kobie (US), Giift Management (Singapore), Maritz Motivation (US), Cheetah Digital (US), Collinson (UK), AIR MILES Loyalty (Canada), Punchh (US), Ebbo (US), Preferred Patron (US), Loopy Loyalty (China), Paystone (UK), LoyLogic (Switzerland), Ascenda (Singapore), Loyalty Juggernaut (US), Gratifii (Australia), SAP SE (Germany), Annex Cloud (US), Apex Loyalty (US), Sumup (UK), Kangaroo (Canada), Smile.io (Canada), SessionM (US), LoyaltyLion (UK), Yotpo (US), SailPlay (US), Phaedon (US), and Zinrelo (US). These players have adopted various growth strategies, such as partnerships, agreements, collaborations, new product launches, enhancements, and acquisitions, to expand their loyalty management market footprint.
Research Coverage
The market study analyzes the loyalty management market size and growth potential across various segments, including offerings, program type, application, business model, vertical, and region. The offerings are divided into solutions and services. The solutions examined within the loyalty management market include platform-based loyalty management and API-based loyalty management. The services considered in the loyalty management market consist of professional services (consulting, implementation, support, and maintenance) and managed services. The program type segment encompasses points-based programs, coalition programs, subscription-based programs, value-based programs, and other program types. The application segment features customer lifecycle management, omnichannel engagement, channel and partner engagement, and additional applications. The business model segment includes business-to-business and business-to-consumer. The vertical segment consists of BFSI, aviation, automotive, media & entertainment, retail & consumer goods, hospitality, telecom, healthcare, oil and gas, and other verticals. The regional analysis of the loyalty management market covers North America, Europe, Asia Pacific, the Middle East & Africa, and Latin America.
Key Benefits of Buying the Report
The report will assist market leaders and new entrants by providing information on the closest approximations of the global loyalty management market's revenue figures and subsegments. It will also enable stakeholders to understand the competitive landscape, gain insights, and develop suitable go-to-market strategies. Furthermore, the report will offer stakeholders a clearer understanding of the market's pulse and supply them with information on key market drivers, restraints, and challenges opportunities.
The report provides the following insights.
1. Analysis of key drivers (include growing focus on reducing customer churn rates, integration of gamification into loyalty programs, companies strategically investing in loyalty programs amidst recession and inflation, emergence of loyalty management mobile applications, demand for advanced solutions to monitor customer scores and enhance customer engagement, and rising adoption of omnichannel customer loyalty strategy), restraints (fragmentation of customer data across various systems and platforms, stringent government regulations), opportunities (Increasing investments in loyalty system technology, surging investments in customer success startup platforms, and rising applications of big data and machine learning), and challenges (exponential rise in marketing technology, Rapidly changing trends and diverse consumer preferences, low awareness of loyalty program benefits, data security and privacy issues, and unappealing rewards) influencing the growth of the loyalty management market.
2. Product Development/Innovation: Detailed insights on upcoming technologies, research & development activities, and new product & service launches in the loyalty management market
3. Market Development: The report provides comprehensive information about lucrative markets, analysing the loyalty management market across various regions.
4. Market Diversification: Comprehensive information about new products and services, untapped geographies, recent developments, and investments in the loyalty management market.
5. Competitive Assessment: In-depth assessment of market shares, growth strategies and service offerings of leading players Epsilon (US), Oracle (US), Comarch (Poland), Bond Brand Loyalty (Canada), Merkle (US), Capillary (Singapore), Jakala (Italy), Kobie (US), Giift Management (Singapore), Maritz Motivation (US), Cheetah Digital (US), Collinson (UK), AIR MILES Loyalty (Canada), Punchh (US), Ebbo (US), Preferred Patron (US), Loopy Loyalty (China), Paystone (UK), LoyLogic (Switzerland), Ascenda (Singapore), Loyalty Juggernaut (US), Gratifii (Australia), SAP SE (Germany), Annex Cloud (US), Apex Loyalty (US), Sumup (UK), Kangaroo (Canada), Smile.io (Canada), SessionM (US), LoyaltyLion (UK), Yotpo (US), SailPlay (US), Phaedon (US), and Zinrelo (US).